JLL has arranged a $106.7 million strategic, industrial-focused joint venture partnership that includes an equity interest in an existing portfolio of 14 high-quality industrial assets totaling 931,398 square feet, in addition to the intent to programmatically acquire additional industrial assets in key logistics markets.
JLL worked on behalf of The Meritex Co. to arrange the partnership with AEW Capital Management. .
The owned portfolio is in strategic markets consisting of Phoenix and Charlotte, N.C. The portfolio locations all have access to primary transportation arteries. Additionally, the partnership will continue the acquisition and select-development program Meritex has been successfully implementing for decades, acquiring core and core-plus, infill, multitenant industrial assets in high-growth markets.
“In addition to properties already in the portfolio, we’re aggressively looking to increase holdings in the key markets of Dallas, Miami, Phoenix and Charlotte, with several transactions in the works,” said Ray Kivett, Meritex CIO. “We’d like to acquire an additional $125 million in properties over the next 18 months on behalf of the joint venture.”
According to a recent JLL Industrial Outlook Report, the industrial market’s second quarter 2019 vacancy rate remains steady at 5 percent despite 65.2 million square feet of new industrial completions. In the second quarter, the U.S. industrial market maintained the momentum seen in first quarter 2019 and continues to be near all-time historic lows.
